Global Flexible Workspace Growth Opportunities

Global Flexible Workspace Growth Opportunities

Strategic Partnering and Technology Innovation to Foster Flexible Workspace Expansion

RELEASE DATE
23-Sep-2022
REGION
Global
Research Code: PD94-01-00-00-00
SKU: EN01341-GL-MR_26881
$2,450.00
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$2,450.00

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Description

Organizations and individuals lease flexible workspaces for periods shorter than traditional business office leases, including month-to-month rolling rentals, 12–24-month contracts, or personally tailored arrangements to meet the tenant’s needs. Opportunities for flexible workspaces focus on property services and ICT solutions and services.

The maturity of the flexible workspace market, particularly in certain cities, in combination with the rapid rise of pandemic-related needs, has been driving market demand. This trend is backed by the emergence of numerous start-ups and greater appreciation for industry incumbents that offer flexible workspaces as a real estate strategy.

The highly competitive market landscape caused by a low barrier to entry and a rapidly evolving competitive environment challenge operators to stay afloat. The expectation-versus-service gap among occupiers and operators remains an issue, while occupiers still largely perceive flexible workspaces as a temporary solution. Having an exclusive address does not resonate well with certain occupiers’ culture and expectations. Furthermore, the security limitations of flexible workspaces limit the occupier profile that real estate offerings can accommodate.

The global flexible workspace market operates on a Space-as-a-Service (SPaaS) business model. Flexible SPaaS enhances the user experience through convenience, comfort, and flexibility. This approach has led to a surge in co-living and co-working spaces. Reduced expenditure, flexibility in lease periods, modern amenities and trendy services, and maintenance-inclusive assets (e.g., lighting and air-conditioning) drive the adoption of this business model.

The development of flexible workspaces reflects the changes in and maturity of office stock, varying across countries and cities. In addition, a city’s occupant profiles influence flexible workspace needs and progress. The strong uptake of seats and flexible workspaces signals customers’ confidence in both the flexible workspace concept and in operators, despite varying long-term office leasing plans across organizations and cities. Asset owners and landlords are aware of the value propositions flexible workspaces offer; this is evident from their readiness to lease office space to flexible workspace operators. Some asset owners also offer flexible workspace solutions as part of their services.

The outlook for the global flexible workspace market is optimistic for 2022. The hybrid working and work near home (WNH) value proposition; increasing partnerships between various industry stakeholders; growing interest in workspace modernization through technology adoption; and rising emphasis on environmental, social, and governance (ESG) values will contribute to market growth during the next five years.

Author: Janice Wung

Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Flexible Workspace Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Top 5 Global Economic Highlights of 2021

Top 5 Global Economic Predictions for 2022

Global GDP Growth

2022 Scenario Analysis—Quarterly Global Growth

2022 Scenario Analysis—Assumptions

2022 Global GDP Growth Snapshot

Advanced Economies—Predictions for 2022

Emerging Market Economies—Predictions for 2022

Top 5 Global Predictions for 2022—Macroeconomic Policies and Developments

2022 Growth Opportunities—Top 3 Opportunities by Region

2022 Regional Trends—Risks and Policy Direction

Scope of Analysis

Segmentation

Geographical Segmentation

Office Space Overview

Office Space Trends

Sustainability in Office Spaces

Smart Workspace Solutions

Flexible Workspace Overview

Flexible Workspace Trends

Industry Structure

Impact of COVID-19 on Flexible Workspaces

Flexible Workspace Occupier Trends

Operating Models

Growth Drivers

Growth Drivers (continued)

Growth Restraints

Growth Restraints (continued)

Flexible Workspace Key Indicators

Technology and Application Overview

Competitive Environment

Competitive Environment (continued)

Proposition of Market Participants—WeWork

Proposition of Market Participants—IWG

Proposition of Market Participants—Industrious

Proposition of Market Participants—Servcorp Limited

North American Flexible Workspace Key Indicators

North American Flexible Workspace Trends

Flexible Workspace—Companies to Watch

European Flexible Workspace Key Indicators

European Flexible Workspace Trends

Flexible Workspace—Companies to Watch

APAC Flexible Workspace Key Indicators

APAC Flexible Workspace Trends

Flexible Workspace—Companies to Watch

MENASA Flexible Workspace Key Indicators

MENASA Flexible Workspace Trends

Flexible Workspace—Companies to Watch

Growth Opportunity 1—Offices with Hybrid Working and WNH Propositions

Growth Opportunity 1—Offices with Hybrid Working and WNH Propositions (continued)

Growth Opportunity 2—Strategic Partnership and Business Models in Reducing Flexible Workspace Risk

Growth Opportunity 2—Strategic Partnerships and Business Models in Reducing Flexible Workspace Risk (continued)

Growth Opportunity 3—Workspace Modernization through Technology Adoption

Growth Opportunity 3—Workspace Modernization through Technology Adoption (continued)

Growth Opportunity 4—Workspace Provision with Environmental, Social, and Governance (ESG) Emphasis

Growth Opportunity 4—Workspace Provision with Environmental, Social, and Governance (ESG) Emphasis (continued)

List of Exhibits

List of Exhibits (continued)

Legal Disclaimer

Organizations and individuals lease flexible workspaces for periods shorter than traditional business office leases, including month-to-month rolling rentals, 12–24-month contracts, or personally tailored arrangements to meet the tenant’s needs. Opportunities for flexible workspaces focus on property services and ICT solutions and services. The maturity of the flexible workspace market, particularly in certain cities, in combination with the rapid rise of pandemic-related needs, has been driving market demand. This trend is backed by the emergence of numerous start-ups and greater appreciation for industry incumbents that offer flexible workspaces as a real estate strategy. The highly competitive market landscape caused by a low barrier to entry and a rapidly evolving competitive environment challenge operators to stay afloat. The expectation-versus-service gap among occupiers and operators remains an issue, while occupiers still largely perceive flexible workspaces as a temporary solution. Having an exclusive address does not resonate well with certain occupiers’ culture and expectations. Furthermore, the security limitations of flexible workspaces limit the occupier profile that real estate offerings can accommodate. The global flexible workspace market operates on a Space-as-a-Service (SPaaS) business model. Flexible SPaaS enhances the user experience through convenience, comfort, and flexibility. This approach has led to a surge in co-living and co-working spaces. Reduced expenditure, flexibility in lease periods, modern amenities and trendy services, and maintenance-inclusive assets (e.g., lighting and air-conditioning) drive the adoption of this business model. The development of flexible workspaces reflects the changes in and maturity of office stock, varying across countries and cities. In addition, a city’s occupant profiles influence flexible workspace needs and progress. The strong uptake of seats and flexible workspaces signals customers’ confidence in both the flexible workspace concept and in operators, despite varying long-term office leasing plans across organizations and cities. Asset owners and landlords are aware of the value propositions flexible workspaces offer; this is evident from their readiness to lease office space to flexible workspace operators. Some asset owners also offer flexible workspace solutions as part of their services. The outlook for the global flexible workspace market is optimistic for 2022. The hybrid working and work near home (WNH) value proposition; increasing partnerships between various industry stakeholders; growing interest in workspace modernization through technology adoption; and rising emphasis on environmental, social, and governance (ESG) values will contribute to market growth during the next five years. Author: Janice Wung
More Information
Author Janice Wung
Industries Environment
No Index No
Is Prebook No
Podcast No
WIP Number PD94-01-00-00-00